Dubai developer Damac reports 52% decline in 9M net profits
Revenue during the first nine months of 2018 also fell 10% on 9M 2017
Dubai development giant Damac Properties has seen net profits tumble 52% in the first nine months (9M) of 2018, with revenue also down 10% on the same period in 2017.
According to the firm’s third quarter financial results on Nasdaq Dubai, net profit for the period ending 30 September 2018 stood at $299.5m (AED1.1bn), a stark drop on 9M 2017 when the bottom line stood at $626.2m (AED2.3bn).
The developer, its bourse statement also revealed, brought in $1.4bn (AED5.2bn) in revenue during the first nine months of the year – a 10% fall on 9M 2017 when Damac brought in $1.6bn (AED5.8bn) in cash.
In a separate statement, Damac said it had delivered 3,800 units in the first nine months of 2018, compared to 1,932 units during the same period in 2017.
The units delivered in 2018 included flagship projects Damac Towers by Paramount Hotels & Resorts Dubai, Damac Heights, Damac Majestine, and several mid-rise buildings overseeing the golf course in Damac Hills.
Speaking on the results, Hussain Sajwani, chairman of Damac Properties, said: “Our medium- to long-term outlook remains optimistic, as we push forward with our landmark developments at full force.
“By offering a strong value proposition that appeals to a broad spectrum of buyers, including a growing number of investors making Dubai their second home, we are maintaining demand for our unique projects.”
Touching on Expo 2020 Dubai, he said “the demand the festival will create for the real estate industry”.
The end of last month saw Damac award Arabtec Construction a $81.4m (AED299m) contract to build hundreds of villas at master-planned Akoya Oxygen community in Dubailand, near Dubai's Umm Suqeim expressway.